Ice Castles, LLC v. LaBelle Lake Ice Palace, LLC

District Court, D. Idaho·Decided September 10, 2021·No. 4:18-cv-00571·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF IDAHO

ICE CASTLES, LLC, a Utah Limited Liability Company, Case No. 4:18-cv-00571-DCN

Plaintiff, MEMORANDUM DECISION AND vs. ORDER

LABELLE ICE PALACE, LLC, an Idaho Limited Liability Company; and LABELLE, LLC, an Idaho Limited Liability Company,

Defendants.

I. INTRODUCTION Pending before the Court are two Motions in Limine filed by Plaintiff Ice Castles, LLC (“Ice Castles”). The first motion (Dkt. 79) seeks to Exclude Advice of Unidentified Counsel. Similarly, the second motion (Dkt. 91) seeks to Exclude Purported Advice of Counsel by Rhett Barney. Defendants LaBelle Ice Palace, LLC, and LaBelle, LLC, (collectively “LaBelle”) have opposed both motions. Having reviewed the record, the Court finds the parties have adequately presented the facts and legal arguments in their briefs. Accordingly, in the interest of avoiding further delay, and because the Court finds the decisional process would not be significantly aided by oral argument, the Court decides the pending motions on the record and without oral argument. Dist. Idaho Loc. Civ. R. 7.1(d)(1)(B). Upon review, and for the reasons set forth below, the Court will DENY the Motion in Limine to Exclude Advice of Unidentified Counsel and GRANT in PART and DENY

in PART the Motion in Limine to Exclude Purported Advice of Counsel by Rhett Barney. II. BACKGROUND On December 27, 2018, Ice Castles filed the instant suit against LaBelle. Dkt. 1. Ice Castles seeks damages and a permanent injunction against LaBelle for infringement of its patent (United States Patent No. 8,511,042 (“the ‘042 patent)), which protects Ice Castle’s patented method (or process) of constructing ice structures. In essence, Ice Castle’s and

LaBelle are business competitors who each have created outdoor winter attractions constructed of ice which visitors can enter, enjoy, and explore. Ice Castles alleges that LaBelle has continuously infringed on one or more claims and designs of the ‘042 patent which LaBelle denies. As part of ongoing discovery, Ice Castles filed a motion in limine to exclude LaBelle

from presenting testimony at trial concerning any advice of counsel received from approximately five unknown attorneys.1 Dkts. 79, at 1–10; 83, at 4–5. In short, prior to this litigation, LaBelle received two cease and desist letters from Ice Castle accusing them of patent infringement and asking them to cease operations. Dkt. 16-4. LaBelle reviewed the letters, consulted with various attorneys, and responded to the letters. Dkt. 16-5. In

1 In fact, LaBelle’s 30(b)(6) deponent could not recall the exact number of attorneys LaBelle had contacted or even when it contacted these attorneys. Dkt. 79-1, at 5. Nevertheless, the parties frequently state LaBelle contacted five attorneys. Regardless of the actual number, the Court will do likewise. addition, LaBelle represented to the media its belief—based upon these attorneys’ advice— that it was not infringing the ’042 patent. Dkts. 83, at 4.

In addition to the first motion in limine, Ice Castles filed a second motion in limine on October 14, 2020, seeking to exclude an advertisement letter and follow-up phone call between LaBelle representatives and attorney Rhett Barney of the law firm Lee & Hayes. Dkts. 91, at 1–4; 94, at 1–8. In this letter, Barney solicited LaBelle’s business and opined briefly on the ’042 patent. Dkt. 91-3. As part of its disclosures in this case, LaBelle confirmed that it had contacted and

received oral advice from these five unknown attorneys as well as written advice from attorneys Rhett Barney and Randall B. Bateman. Dkt. 79-3. The unprivileged letters and advice provided by Barney and Bateman were provided through the ordinary course of discovery in this case.2 Id. III. LEGAL STANDARD

“Motions in limine are well-established devices that streamline trials and settle evidentiary disputes in advance, so that trials are not interrupted mid-course for the consideration of lengthy and complex evidentiary issues.”3 United States v. Tokash, 282 F.3d 962, 968 (7th Cir. 2002). “The term ‘in limine’ means ‘at the outset.’ A motion in

2 LaBelle has not provided a privilege log in this case since trial counsel is claiming attorney-client privilege. Dkt. 79-3. 3 Although the Federal Rules of Evidence do not explicitly authorize motions in limine, the United States Supreme Court has held that trial judges are authorized to rule on motions in limine pursuant to their authority to manage trials. Luce v. United States, 469 U.S. 38, 41 n.4 (1984). limine is a procedural mechanism to limit in advance testimony or evidence in a particular area.” United States v. Heller, 551 F.3d 1108, 1111 (9th Cir. 2009) (quoting Black’s Law

Dictionary 803 (8th ed. 2004)). Because “[a]n in limine order precluding the admission of evidence or testimony is an evidentiary ruling,” United States v. Komisaruk, 885 F.2d 490, 493 (9th Cir. 1989) (citation omitted) “a district court has discretion in ruling on a motion in limine.” United States v. Ravel, 930 F.2d 721, 726 (9th Cir. 1991); see United States v. Layton, 767 F.2d 549, 554 (9th Cir. 1985). Motions in limine should not be used to resolve factual disputes or to weigh

evidence, and evidence should not be excluded prior to trial unless “the evidence [is] inadmissible on all potential grounds.” United States v. Whittemore, 944 F. Supp. 2d 1003, 1006 (D. Nev. 2013) (quoting Indiana Insurance Co. v. General Electric Co., 326 F. Supp. 2d 844, 846 (N.D. Ohio 2004)); see United States v. Young, No. CR 10-00923(C)-SJO, 2013 U.S. Dist. LEXIS 200385, at *4–5 (C.D. Cal. Nov. 22, 2013).

Finally, in limine rulings are preliminary and, therefore, “are not binding on the trial judge [who] may always change his mind during the course of a trial.”4 Ohler v. United States, 529 U.S. 753, 758 n.3 (2000); Luce, 469 U.S. at 41. Indeed, it is sometimes necessary to defer ruling until trial when a better assessment of evidence can be made. Regan v. Hdr Eng’g, No. 1:17-cv-00342-CWD, 2021 U.S. Dist. LEXIS 12579, at *2 (D.

4 “[A party] is not entitled to a definitive ruling on a motion in limine.” United States v. Bensimon, 172 F.3d 1121, 1127 (9th Cir. 1999). Idaho Jan. 13, 2021); Crawford v. City of Bakersfield, No. 1:14-cv-01735-SAB, 2016 WL 5870209, at *2 (E.D. Cal. Oct. 6, 2016); Whittemore, 944 F. Supp. 2d at 1006.

IV. ANALYSIS A. Motion in Limine to Exclude Advice of Unidentified Counsel (Dkt. 79) At issue in Ice Castles’ first Motion in Limine is the oral advice LaBelle received from five unknown attorneys and whether its reliance on such communications was reasonable at the time.5 Underwater Devices, Inc. v. Morrison-Knudsen Co., 717 F.2d 1380, 1389–90 (Fed. Cir. 1983).

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Ice Castles, LLC v. LaBelle Lake Ice Palace, LLC, (D. Idaho 2021).

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